Date of Award
Fernando Rios-Avila, Ph.D.
In recent years, there has been a growing trend in Major League Baseball. Elite Latino players are signing long-term extensions early in their careers, years before they reach free agency. This dissertation investigates wage differentials between races among players with over six years of service time in the MLB. First, some of the reasons why Latino players are pressured into accepting extensions early in their career are presented. Then, I estimate several models controlling for different types of performance. The statistic Wins Above Replacement measures all aspects of a player’s performance, making it an ideal tool for labor market studies. The results from the model show convincing evidence of the presence of discrimination against topearning Latino hitters and starting pitchers. The models suggest that from the years of 20172019, Latino players experienced a wage penalty in comparison to white-American players.
Rivera, Esteban, "Investigating Discrimination in Major League Baseball: Not So Perfect Competition" (2020). Theses - Graduate Programs in Economic Theory and Policy. 25.